Problem 1: A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.
a) $1,000.00
b) $1127.50
c) $1297.85
d) $2549.85
Problem 2: A 30-year zero-coupon bond that yields 12% percent is issued with a $1000 par value. What is the issuance price of the bond (round to the nearest dollar)?
a) $33
b) $83
c) $8333
d) $none of the above